Gov. Ricketts’ Statement on September Revenue Report
Governor orders reduced spending for state agencies
LINCOLN – Today, Governor Pete Ricketts issued a statement on an announcement by the Nebraska Department of Revenue that tax revenues fell short of the projected September forecast by about $25 million.
“Circumstances can still change depending on the October meeting of the Nebraska Economic Forecasting Advisory Board, but based on current receipts and the state’s healthy cash reserve I am not likely to call a special session. The downturn in revenue is certainly a significant challenge, but we are working to manage it within state agencies. I have every confidence that the Legislature and I can work together in January to do what needs to be done to meet the challenge.
“In the meantime, last quarter I reduced state agency allotments to cause spending restraint, and I am further reducing their allotments in the next quarter to cause additional restraint. Today, I am putting in place a travel ban on non-essential out-of-state travel and announcing a hiring freeze for all non-mission critical positions in state agencies. Additionally, all agency directors have been working on adjustments to their budgets and identifying efficiencies in agencies to prepare for the next biennial budget.”
In July, the Governor instructed the State Budget Division to reduce allotments of fiscal year 2016-17 appropriations to state agencies, boards, and commissions by 1% each quarter to cause additional spending restraint and to prepare for possible reductions to current budgets. The second quarter (October through December) allotment was recently made to 48% of total new appropriations, 2% less than customary for the second quarter. The third quarter allotment will be made at 71%, 4% less for that fiscal quarter. The fourth and final quarter allotment will be made at no greater than 96% pending further consideration of adjustments to FY2016-17 appropriations by the Legislature.